Given each of the following values for the multiplier, calculate both the MPCand the MPS..

a. 20

b.10

c. 8

d. 5

Short Answer

Expert verified

Calculation of MPCand MPSwith the given values for the multiplier is found successfully.

a. The value of MPCis 0.95and value of MPSis 0.05for value of multiplier 20.

b. The value of MPCis 0.9and value of MPSis 0.1for value of multiplier 10.

c. The value of MPCis 0.875and value of MPSis 0.125for value of multiplier 8.

d. The value of MPCis 0.8and value ofMPSis0.2for value of multiplier5.

Step by step solution

01

(Part a) Calculation of MPC with multiplier value as 20

Calculating the values of MPCand MPS,when the multiplier value is 20-

Calculating MPC- Multiplier=11-MPC

20=11-MPC

1-MPC=120

1-MPC=1/201-MPC=0.05MPC=1-0.05MPC=0.95

The value of MPCwhen the value of multiplier20is 0.95.

02

Calculation of MPS with multiplier value as 20

Calculating MPS-

Multiplier =1MPS

20=1MPS

MPS=1/20MPS=0.05

The value of MPS,when multiplier value 20is 0.05.

03

(Part b) Calculation of MPC with multiplier value as 10.

Calculating the value of MPCand MPS,when the multiplier value is 10-.

Calculating MPC-

Multiplier =11-MPC

10=11-MPC

localid="1651547890156" 1-MPC=1/101-MPC=0.1MPC=1-0.1MPC=0.9

The value of MPCwith multiplier value 10is 0.9.

04

Calculation of MPS with multiplier value as 10

Calculating MPS-

Multiplier =1MPS

10=1MPS

MPS=110MPS=0.1

The value ofMPSwith multiplier value10is 0.1.

05

(Part c) Calculation of  MPC with multiplier value is 8

Calculating the value of MPCand MPS,when the multiplier value is localid="1651548240119" 8-.

Calculating MPC-

Multiplier =11-MPC

8=11-MPC

1-MPC=18

1-MPC=0.125MPC=1-0.125MPC=0.875

The value of MPCwith multiplier value 8is 0.875.

06

Calculation of MPS with multiplier value as 8.

Calculating MPS-

Multiplier =1MPS

8=1MPS

MPS=1/8MPS=0.125

The value of MPSwith multiplier value8is 0.125.

07

(Part d) Calculation of MPC with multiplier value is 5.

Calculating the value of MPCand MPS,when the multiplier value is 5-.

Calculating MPC-

Multiplier =11-MPC

5=11-MPC1-MPC=151-MPC=0.2MPC=1-0.2MPC=0.8

The value of MPCwith multiplier value 5is0.8

08

Calculation of MPS with multiplier value is 5

Calculating MPS-

Multiplier =1MPS

localid="1651549144310" 5=1MPSMPS=15MPS=0.2

The value of MPSwith multiplier value 5is 0.2.

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